Customers at Signature Bank can rest assured that their deposits are safe following the bank’s spectacular collapse and abrupt federal takeover, Governor Kathy Hochul said Monday, but some depositors remained uneasy about the whole situation and say the bank is not being forthright with them.
The Federal Deposit Insurance Corporation (FDIC) took over Signature Bank’s operations on Sunday night after state regulators seized it, seeking to dam a bank run and assure depositors at all banks that their money is safe. Though the FDIC typically only insures deposits up to $250,000, the feds will guarantee deposits of all sizes at Signature and at Silicon Valley Bank, the Treasury and Federal Reserve announced on Sunday.